Assess gst registration composite sceheme trading a jewellery shop.
1.sales turnover year: 2019-2020 Rs.35 lacs tax paid 1% rate rs .35,000/-
2.same dealer income from labour charges( majuries and repairs)year :2019-2020 rs.1,50,000/-
Questions:
Labour charges income Rs.1,50,000/- amount which rate of tax payble(1% or 18%) applicable.
As per proviso to Sec 10(1) supply of services can be made by composition supplier not exceeding 10% of turnover in State in preceding FY or Rs 5 lakh whichever is higher. Thus in this case composition scheme can be availed.
As per Rule 7 of the CGST Rules, in case of any other supplier (apart from manufacturer and restaurant) the rate of tax is 0.50% of the turnover of taxable supplies of goods and services in the State / UT.
Accordingly rate of 1% would apply of labour charges as well.
Team Clearmytax.in